10 Best Places To Buy a Beach House To Rent Out for Passive Income

Buying a property to use as a short-term rental via sites like Airbnb and VRBO can be a very wise investment — if you choose the right location. Properties near the beach can be particularly lucrative, as many people desire proximity to the water for their seasonal getaways.

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Realtor.com has identified the best places to buy a beach home as a rental property by comparing a home’s average annual returns to what you’d have to pay for it — also known as the yield. Based on this analysis, these are the best places to buy a beach property if you’re looking for short-term rental income .

1. Pawleys Island, South Carolina

• Median home price: $497,237
• Annual revenue potential: $41,995
• Expected yield: 19.8%

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2. Michigan East Coast, Michigan

• Median home price: $208,513
• Annual revenue potential: $20,265
• Expected yield: 16.7%

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3. Cape San Blas, Florida

• Median home price: $798,807
• Annual revenue potential: $64,264
• Expected yield: 12.8%

4. Gulfport and Biloxi, Mississippi

• Median home price: $303,930
• Annual revenue potential: $23,646
• Expected yield: 12.4%

5. Wilmington, Delaware

• Median home price: $614,856
• Annual revenue potential: $35,361
• Expected yield: 11.2%

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6. Lincoln City/Newport, Oregon

• Median home price: $597,379
• Annual revenue potential: $43,241
• Expected yield: 11.10%

7. Grays Harbor, Washington

• Median home price: $421,627
• Annual revenue potential: $29,331
• Expected yield: 11%

8. Outer Banks, North Carolina

• Median home price: $705,939
• Annual revenue potential: $34,237
• Expected yield: 10.5%

9. Corpus Christi, Texas

• Median home price: $541,169
• Annual revenue potential: $27,154
• Expected yield: 10.4%

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10. Gulf Shores, Alabama

• Median home price: $615,535
• Annual revenue potential: $112,281
• Expected yield: 10.3%

Data is sourced from Realtor.com and is accurate as of June 23, 2024.

This article originally appeared on GOBankingRates.com : 10 Best Places To Buy a Beach House To Rent Out for Passive Income